Supreme audit institutions (SAIs) worldwide perform an essential role in promoting the transparency, efficiency, effectiveness and accountability of the public sector, and in improving the financial management and performance of government institutions. In recent years, this role has expanded to embrace sustainability efforts and policies as governments work to implement the United Nations’ Sustainable Development Goals (SDGs).
Since 2016, SAIs have worked nationally – and frequently internationally under the umbrella of the International Organisation of SAIs (Intosai) – to support implementation of the SDGs by carrying out audits of progress on SDG targets and of national programmes supporting SDG implementation. This work, argues the UN’s latest biannual report on the role of SAIs in SDG implementation, has had tangible impacts on national policies, programmes and institutional arrangements.
‘SAIs expose gaps between promises and delivery’
Launching the report, Navid Hanif, assistant secretary-general for economic development at the UN, said that SAIs matter more than is often acknowledged. ‘Their work spans all SDG goals – this is not peripheral activity,’ he pointed out. ‘Their evidence strengthens accountability and turns intent into action. They expose gaps between promises and delivery. This kind of evidence is indispensable.’
The hope is that the report will inform national and intergovernmental thinking on how to accelerate SDG implementation between now and 2030. As the report points out, SAIs are uniquely positioned here to provide governments with evidence-based insights and recommendations – their audits often produce critical information on the effectiveness of SDG-related policies and programmes.
Building expertise
The auditing of internationally agreed development goals was, in most cases, an entirely new concept for SAIs when the UN adopted the 2030 Agenda for Sustainable Development with its 17 SDGs. But with the support of Intosai’s knowledge exchange and capacity-building initiatives, SAI expertise on the SDGs has developed rapidly.
Of the 166 SAIs surveyed by Intosai for the report, 43% say they have carried out performance audits on SDG implementation, and 22% that they have conducted audits that have been used to inform country reporting against SDG targets.
‘Many audits have had tangible impacts, leading governments to adjust their institutional mechanisms,’ says the report, adding that SAIs are increasingly in a position to identify ‘institutional constraints’ in the way of effective SDG implementation.
‘SAI audits are placing climate change as a long-term national priority’
Climate
The work of SAIs on climate ranges from comprehensive evaluation of national climate strategies to sector-specific policies and programmes such as energy transition. Increasingly, the report points out, SAIs are carrying out forward-looking audits to inform governments about climate risks, ‘helping to place climate change as a long-term national priority requiring the engagement of a broad range of stakeholders’.
These audits have highlighted a set of institutional barriers to the successful implementation of SDG 13 (climate action), including:
- inadequate monitoring, evaluation and reporting, non-compliance with reporting requirements, and limited transparency
- poor data collection and quality, and fragmented data systems
- weak coordination across climate policies and institutions
- ineffective planning
- unclear climate targets
- insufficient financial resources.
On the positive side, the work of SAIs on climate has had a direct impact on innovative solutions. In Costa Rica, for example, the work of the country’s comptroller general was used to help develop a national methodology for assessing climate change vulnerability in public and private infrastructure, while an SAI climate audit on agriculture in Morocco resulted in support measures for farmers facing drought and water scarcity.
However, the report raises concerns about the quality of climate auditing and the ability to translate audit evidence into meaningful policy impact. Limited recognition of the role of SAIs in climate governance is part of the challenge, along with political sensitivities around climate change and the fragmentation of climate stakeholders.
‘Continuing to conduct meaningful work on the SDGs is not a given’
Untapped potential
The report is evidence that SDG audits are being steadily integrated into the work of SAIs. It acknowledges, though, that too much important audit evidence and insight around SDGs is not being used to its full advantage. ‘There is significant untapped potential to strengthen the role of public finance audits in supporting the follow up and review of the SDGs,’ it says.
Bridging the gap, it adds, ‘requires increased communication between SAIs and other stakeholders’. This could include ‘more systematic and structured engagement’ with stakeholders, both nationally and internationally. ‘Showcasing how audit recommendations can drive improvements in public debt management, budget formulation and execution, and the overall use of public resources is essential to demonstrating their value in advancing sustainable development,’ it says.
The report warns that ‘the continued ability of SAIs to conduct meaningful work on the SDGs is not a given’, with threats to SAI independence seen as a key risk. Ensuring that SAIs have the necessary independence, mandate and resources to fulfil their oversight role effectively is therefore a key recommendation of the report.
